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Dix Communications - Oil & Gas June 2012 Edition 1
A MONTHLY PUBLICATION
JUNE 2012
SHALE DEVELOPMENTA GAME CHANGER FOR U.S.
ENERGY PRODUCTION
FROM EXPLORATION TO EXPECTATIONS:
INSIGHTS ON THE INDUSTRY
HIGHER EDUCATION
RAMPING UP OIL
AND GAS TRAINING
DEMAND FOR WORKERS
PICKING UP
SEVEN TIPS FOR
LANDOWNERS
SIGNING LEASES
Andrew S. [email protected]
G.C. Dix [email protected]
Ray BoothExecutive [email protected]
Cathryn StanleyRegional [email protected]
Niki WolfeRegional [email protected]
Ed ArchibaldSE Ohio Sales Cambridge, Ohio Offi [email protected] 740-439-3531
Peggy Murgatroyd,SE Ohio Sales Barnesville andNewcomerstown, Ohio Offi [email protected] Barnesville 740-498-7117 Newcomerstown
Jeff KaplanNE Ohio Sales Alliance & Minerva, Ohio Offi [email protected] 330-821-1200
Owen WilliamsLayout Designer
“Oil & Gas” is a monthly publication jointly produced by Dix Communication newspapers across Ohio. Copyright 2012.
Cover Photo by: Sarah Gordon, Ashland Times-GazetteCrews from Halliburton, a company contracted by Devon Energy, work on the horizon-tal hydraulic fracturing phase of a well in northern Ashland County.
◆ Shale Development A Game Changer............pg. 2
◆ Expert says development will
take some time .............................................pg. 4
◆ Programs Available to Educate Workers .........pg. 6
◆ 7 tips for landowners .......................................pg. 8
◆ ‘Get an attorney’ ............................................pg. 10
◆ ‘It’s all about the jobs,’ ...................................pg. 12
◆ A ‘tsunami’ that smells like money ................pg. 16
◆ Force Incorporated bringing jobs
to Belmont County .......................................pg. 18
◆ Region studies use of roads for
oil and gas industry ......................................pg. 22
◆ Industry takes ‘STEPS’ to be safe .................pg. 24
◆ For Eastern Ohio, these days, business
is good .........................................................pg. 26
◆ Oil in the early days ......................................pg. 30
◆ Infi nity Oilfi eld Services opens
site in Newcomerstown ................................pg. 32
◆ It’s happening here,
it’s happening now .......................................pg. 34
◆ Ohio Well Activity by the numbers ................pg. 36
◆ Industry leader comes
to Southeast Ohio ........................................pg. 38
◆ Top Ohio Counties with Horizontal
Drilling Activity .............................................pg. 42
◆ Association opposes Kasich proposal ..........pg. 44
◆ Senate passes bill, creates annual
environmental award for oil and
gas drillers ...................................................pg. 45
◆ Oil & Gas Fact Sheet ....................................pg. 46
Table of Contents
Attributions
Oil & Gas June 2012 Edition - Dix Communications2
Shale DevelopmentA Game Changer for U.S. Oil and Natural Gas Production
As recently as the late
2000s, the U.S. ener-
gy picture was bleak.
By 2008, U.S. oil production
had declined steadily from its
1970s peak. Natural gas pro-
duction was on a similar down-
ward spiral. Already import-
ing 80% of its crude oil needs
(costing more than $1 billion
each day!), forecasts were for
increased natural gas (LNG)
imports to meet future U.S. en-
ergy needs.
37% of U.S. energy needs come from oil, primarily for trans-
portation fuel. 25% currently comes from natural gas. The rest
comes from coal (21%), nuclear (9%), and renewable sources
(8% including hydroelectric, ethanol, wind and solar). The
cleanest burning of all fossil fuels, natural gas is used for elec-
tric power generation, heating, and feed stock for plastic, fertil-
izer and other important chemicals. A small portion is used for
transportation fuel.
Fortunately, in less than 10 years, new technology has
changed the game for U.S. oil and gas producers, making it
economical to recover large amounts of oil and gas that are
locked deep underground in shale and tight sands plays. U.S.
oil production is ramping up steadily, increasing more than 5%
per year since 2008 thanks largely to two shale bonanzas - the
Bakken play in North Dakota and the Eagle Ford play in Tex-
as. Many producers are forecasting similar potential from the
Utica Shale in Eastern Ohio.
Natural gas production has increased so much that under-
ground storage capacity is full and wellhead prices are down
Norm Shade
“Natural gas production has increased so much that underground storage ca-pacity is full and wellhead prices are down to mid-1990s levels.”
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Dix Communications - Oil & Gas June 2012 Edition 3
to mid-1990s levels. Gas imports peaked in 2007 and have
fallen markedly ever since. According to the U.S. Department
of Energy’s Energy Information Administration (EIA), shale
gas, not much of a factor 5 years ago, accounted for more than
32% of U.S. production in 2011. Industry experts estimate that
developable natural gas reserves are vast enough to supply the
country’s needs for more than 100 years at current rates of con-
sumption. Barnett in North Texas, Fayetteville in central Ar-
kansas, and Haynesville in Northwest Louisiana are all prolific
shale plays that have led the rapid turnaround in U.S. produc-
tion. And there is significant upside as newer plays like the
Marcellus and Utica Shale are developed. Both of these plays,
which extend into the Eastern part of Ohio, are believed to hold
vast recoverable deposits of natural gas and oil.
Responsible production from shale plays will greatly reduce
the need for imports, and some optimists predict that the U.S.
can become energy independent by the end of the decade. Not
only does domestic energy production create lots of jobs and
wealth for producers and lease holders, development of these
plays is important for our national security.
W. Norm Shade
President of ACI Services Inc. Headquartered in Cam-bridge, OH. ACI is a leader in the manufacture of custom engineered gas compressor products used throughout the world. Shade received BME and MSME degrees from The Ohio State University, graduating Summa Cum Laude in 1970, and he is a registered professional engineer in Ohio, Oklahoma and Texas.
Before heading ACI in 2004, he spent 32 years in various engineering and management roles with Cooper Cameron Corporation (now Cameron International) and 2 years de-veloping his own Houston, TX based consulting company that continues to provide market research and technical
services to major companies in the oil and gas industry. He has authored more than 170 technical papers and articles, and serves as a regular Contributing Editor for COMPRES-SORTechTwo magazine, a monthly gas machinery journal.
Shade is on the Advisory Board of the Gas Compressor Association and is active in the Gas Machinery Research Council, INGAA and the American Society of Mechanical Engineers, having chaired various committees. In 2000, he was named a Fellow of the American Society of Mechani-cal Engineers, recognizing his career achievements in the engineering fi eld; and he has received many other awards including the ASME Distinguished Service Award and the Ohio State University E.G. Bailey Entrepreneurship Award.
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Oil & Gas June 2012 Edition - Dix Communications4
During a recent inter-
view with geologist
and oil and gas pro-
ducer David R. Hill, several
topics were presented to Hill
to enlighten the masses on the
status quo of the oil and gas
industry, from exploration to
expectations to the proposed
severance tax to Senate Bill
315.
First and foremost Hill said,
“although we are smack dab in
the middle of the oil window”
[of the Utica Shale Play], we have to “temper our expecta-
tions ... and be cautiously optimistic.
“A lot of this information is theory, as more wells are
drilled and we get more data points (information), maps will
be redrawn to coincide with current or newly discovered
data.”
Relative to the projection of the number of jobs created in
southeastern Ohio, Hill stands by the
results of an economic impact study
by the Ohio Oil and Gas Energy
Education Program released in 2011,
which estimates Ohio’s job market
will demand more than 200,000 jobs,
and industry wages would climb to
more than $12 billion in annual sala-
ries and personal income to Ohioans,
by 2015. Job growth for 2012 is
estimated at 22,297.
The study stated jobs would
involve leasing, royalties, explora-
tion, drilling, production and pipeline
construction to produce oil and gas from the Utica Shale Play.
Hill agrees with the volume of jobs created by the industry,
but is less optimistic about it all happening by 2015.
“If Ohio grows at the same pace as Pennsylvania, we could
benefit from approximately 200,000 jobs within the next five
years,” he said. “From leasing to actual production, approxi-
mately 200 different job classifications will have a hand in
developing that well.
“It is also estimated that Ohio would benefit from $1.054
billion in tax revenue if the industry is allowed to develop
under the existing tax code.
“In addition to the proposed increase in the severance
tax levied on the industry, oil and gas companies also pay
sales tax, commercial activity taxes, fuel use taxes, personal
income taxes, and ad volorem
taxes. The ad volorem tax is Latin
for ‘according to value.’ Property
ad valorem taxes are incurred
through ownership of an asset and
are the major source of revenue
for local governments. Ad vol-
orem taxes are roughly equal to 1
percent of gross sales, that money
goes back to the county where
the well exists. Of the money sent
back to the county, 71 percent goes to the local school district
where the well is located. Ad volorem taxes benefit the local
economy.
“The severance tax is a gross receipts tax. Generally, the
landowner and the oil company are subject to the severance
tax. Raising the severance tax means landowners will send
10 percent of their royalties to Columbus (Based on 4 percent
severance tax on high volume wells, and a 6 percent state
income tax).
The average cost to drill a horizontal well is approximately
$8 million. The difference between
the Marcellus Shale, which covers
a thin strip of eastern Ohio, and the
Utica Shale, which covers about half
of Ohio, is the Marcellus is “dry
gas,” whereas the Utica is a “wet
gas” and/or oil reserve.
Although there is currently no
fully defined quantitative definition
of a wet gas flow that is universally
accepted, what constitutes the value
of wet gas is the concentration of
ethane, propane, butane and other
gas by-products. Methane is indig-
enous in both wet and dry gas.
“All of Ohio has a stake in the development of the oil and
gas industry,” said Hill. “Senate Bill 315 is currently being
debated in the legislature to strengthen well construction
requirements. Virtually all mishaps in the hydraulic fracturing
process may be traced back to faulty well construction. The
Ohio Oil and Gas Association is fully engaged in the process.
I am convinced common sense will prevail.”
David R. Hill has 32 years of experience in the oil and gas industry. He is the secretary/treasurer for the Ohio Oil and Gas Association, and a member of the American Association of Petroleum Geologists. He has served on the OOGA technical advisory council under the Taft, Strickland and Kasich admin-istrations.
InterviewExpert says development will take some time
Judie PerkowskiDix Communications
“If Ohio grows at the same pace as Pennsylvania, we could benefi t from approx-imately 200,000 jobs with-in the next fi ve years.”
David R. Hill
Dix Communications - Oil & Gas June 2012 Edition 5
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Oil & Gas June 2012 Edition - Dix Communications6
Recognizing the need to prepare for the infl ux of workers in the oil and gas industry, several local col-leges and universities offer a number of programs and courses:
ZANE STATE COLLEGE (ZANESVILLE)The Natural Gas Engineering Technology associate de-gree program includes classroom, laboratory and fi eld experiences.A sample course curriculum covers: Natural gas distri-bution and compression; petroleum geology; oil and gas reservoirs; formation evaluation; industrial mechanics; drilling methods/operations; fi eld services; natural gas production; mineral rights and leases; world regional ge-ography; physics; introduction to mechanical modeling; and general chemistry.Curriculum also includes an internship.For program information contact Engineering and En-ergy Science Professor Daniel Durfee, 740-588-1282 or [email protected] or visit www.zanestate.edu.
BELMONT TECHNICAL COLLEGE(ST. CLAIRSVILLE)
NGT 100 - Introduction to the Oil and Gas Industry is a 5 1/2 week 4-credit course beginning on July 3 and meet-ing Tuesdays and Thursdays from 5:30 to 9:30 p.m. at the main campus. End date is Aug. 7.This course provides a survey of the oil and gas industry, it’s history, development, infl uence on society and work politics, and its current state. The course will cover con-cepts of petroleum discovery, geology, production, trans-portation, refi ning, marketing, and economics.Course learning outcomes include: To introduce the pe-
troleum industry from in-ception to the present;
to review the history of petroleum and natural gas development as a function of changing society and technol-ogy; to explore the discovery, geologic development, and
technology of oil and gas pro-
d u c -
tion; to introduce the techniques of modern on and off shore exploration and production; to review domestic andworld markets for oil, gas, and their many derivative prod-ucts; to explore current world use, future demand, and alternatives; and to introduce U.S. and state regulationson the industry.For registration information call 740-699-3809 or visit www.btc.ed.
WASHINGTON STATE COMMUNITY COLLEGE (MARIETTA)
New programs and courses offered for credit include: Geoscience; Geotechnical Drafting; Private Security Academy; and Introduction to the Oil & Gas Industry.Existing programs and courses to support the oil and gasindustry include: CAD Drafting; Electronics; IndustrialMachining & CNC; Instrumentation, Control & Electrical; Process Technician; Chemical Operator Online; and Die-sel Truck Technician.For program information contact Dean of Business, En-gineering & Industrial Technologies Brenda Kornmiller, 740-374-8716 or [email protected] or visit www.wscc.edu.
MARIETTA COLLEGE (MARIETTA)Bachelor of Science degree offered in petroleum engi-neering. Courses required of all petroleum engineeringmajors include: Petrophysics; Core Analysis Laboratory;Drilling and Completion Fluids; Well Control and Casing Design Laboratory; Hydrocarbon Phase Behavior; Res-ervoir Engineering; Drilling Engineering; Production Sys-tems Engineering I; Production Systems Engineering II;Formation Evaluation; Enhanced Recovery; Natural Gas Engineering; Transient Pressure Analysis; and SeniorCapstone Design Seminar.For program information contact Dr. Robert W. Chase, 740-376-4776, or visit www.marietta.edu
KENT STATE UNIVERSITY (KENT)The Oil and Gas Management Certifi cate is designed to enable industry executives, senior budget-holders anddecision-makers in investment banks, consultancies,government agencies and large multinational corpora-tions to evaluate and manage risk and exploit business opportunities in the global oil and gas industry.The course includes three modules: Module I, ProjectManagement in Oil and Gas – Managing Resource; Mod-ule II, Oil and Gas Accounting – Oil and Gas Operations and Costing; and Module III, Essentials of Leadership.Cost includes an Apple iPad 2 pre-loaded with course materials.The course is offered during the summer and fall to suit an organizations’s schedule. May be arranged for a group of 20 or more. For further information, contact Dr. Pratim Datta at [email protected] or Pam Silliman at [email protected] orvisit www.kent.edu.
Programs Available to Educate Workers
troleum industry from in-ception to the present;
to review the history ofpetroleum and natural gas development as afunction of changingsociety and technol-ogy; to explore thediscovery, geologicdevelopment, and
technology of oil and gas pro-
d u c -
Dix Communications - Oil & Gas June 2012 Edition 7
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Oil & Gas June 2012 Edition - Dix Communications8
Many landowners in
eastern Ohio have
been disappointed
because they signed an oil
and gas lease too quickly.
By “too quickly,” we mean
the lease was signed without
a full understanding of the
words in the lease, or because
nearby landowners got better
terms – including more lease
bonus and higher royalty – or
because the landowner did not
understand the process that oc-
curs after signing and prior to
the landowner receiving payment of the lease bonus.
Therefore, we offer the following “Seven Secrets” to assist
landowners who are considering signing an oil and gas lease:
1. There is no such thing as a Standard Form Oil and Gas
Lease.
2. Every paragraph/word of an oil and gas lease (and related
documents) is negotiable.
3. The Landowner wants many landowner friendly terms in
the lease. These terms should protect the landowner’s surface,
sub-surface, water, agriculture and other rights and activities.
4. The Landowner needs to understand every word of an
oil and gas lease prior to signing, including the importance of
implied covenants; this recommendation also applies to docu-
ments which may be related to the lease such as “Order of Pay-
ment,” “Amendment to Lease,” “Memorandum of Lease,” and
“Easement.” (An Easement is not a lease, but a permanent
grant of real estate rights.)
5. The Landowner wants the oil and gas lessee to be an oil
and gas company (“OGC”) with the technical and financial ca-
pability to competently drill, produce, and operate a well or
wells. The reputation of the OGC in the oil and gas industry is
also important.
6. The Landowner wants the lessee to sign the lease (most
oil and gas leases are set up so the lessee does not sign) and the
related documents.
7. The Landowner always wants to retain a copy of any
signed oil and gas lease and the related documents (with signa-
tures of both the Landowner and the lessee).
Landowners who spend sufficient time to educate them-
selves generally about the oil and gas business and benefit from
these Seven Secrets may end up happier than those landowners
who sign an oil and gas lease too quickly.
7 tips for landowners
J. Richard EmensEmens & Wolper
Law Firm
Dix Communications - Oil & Gas June 2012 Edition 9
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Oil & Gas June 2012 Edition - Dix Communications10
Presenting detailed in-
formation about older
oil and gas leases at
the Buffalo Campus of the
Mid-East Career and Tech-
nology Center recently,
Dale Arnold said the best
advice he could give them
was to “get an attorney.”
Arnold is director of Energy,
Utility and Local Government
Policy at the Ohio Farm Bu-
reau.
“Leases are very complex ...
Get an attorney,” said Arnold. “Your lease may have changed
hands many times since the original owner signed on, and you
may now have a new business partner ... Get an attorney.”
“Twenty five percent of leases in Ohio are new leases, 75
percent are older leases. An oil and gas lease is defined as a le-
gal deed by which a landowner authorizes exploration for and
production of resources on his/her land; usually in consider-
ation of a royalty.
“Many farm families have handed down leases through gen-
erations. The original owner is gone, and the family-owned
small oil company has been bought and sold several times. So,
who is the legal owner? The only lease that is enforceable is
the one on file in the county recorder’s office, witnessed and
notarized. The lease is still good even if the landowner or the
company is gone,” he said.
Take the time to get to know your new business partner. Ask
questions. Just as important is your legal counsel. Ask legal
counsel how many years of experience he/she has working
with complex leasing/contracts used in energy and utility-re-
lated issues. Are they familiar with different types of energy
technology being used today. Do you have access to financial
planning resources for the farm (business functions, taxes, etc.)
and family, (estate planning, gifts, trusts, multi-generation ben-
efits, taxes, etc.). Do you have access to family counseling ser-
vices, philanthropy and working with local foundations.
When you acquire a lot of money, you should ask yourself
if you want to give it to a community charity, like a church,
school or civic organization, or do you want to give it to the
tax man?
“Every lease is unique. A lease is a basic implied covenant
where anything and everything is negotiable — within reason.
“And, most important: Do Not Cash the Check, until your
attorney has read, understands and has communicated to you
about immediate tax ramifications, and everything clause in
‘Get an attorney’ to study older leases
Judie PerkowskiDix Communications
j
Dix Communications - Oil & Gas June 2012 Edition 11
the lease. Once again, get an attorney. It is worth every penny,”
said Arnold.
Arnold also advised the group
to know and understand the
workings of the Ohio Depart-
ment of Natural Resources.
“The ODNR is your police
force. The oil and gas division
regulates, inspects and enforces
rules for oil/gas drilling, operat-
ing, production operations for
brine disposal, underground in-
jections wells, and every phase
of drilling and capping wells.
You can also track oil and gas
permits, project completions,
production reports, the name of
the well, the name of the oil/gas
company and the stage the drill-
ing process is in. And, all infor-
mation is updated weekly.
It has been reported several
times about the anticipated re-
sults from the Marcellus and
Utica Shale formations. The
Marcellus covers a thin strip of
eastern Ohio and contains dry
gas reserves. The Utica Shale Play has wet gas, which lies
beneath the Marcellus and covers about a third of Ohio. The
Utica is expected to produce 5.7
billions barrels of oil.
“Anyplace you have seen oil
and gas production in Ohio, it’s
approximately 40 to 60 percent
of what lies below the surface ...
The oil companies are coming
back to get the rest,” he said.
For more in-depth information
of Arnold’s presentation in PDF
format, and/or a list of experi-
enced oil and gas attorneys, call
or email: Dale Arnold, Director,
Energy Services Ohio Farm Bu-
reau Federation at 614.246.8294
or Email: [email protected].
For the Ohio Department of
Natural Resources Oil & Gas
Resources Management, call
(614) 265-6922 or visit WWW.
ODNR.com.
“Many farm families have handed down leases through generations. The original owner is gone, and the family-owned small oil company has been bought and sold several times. So, who is the legal owner? The only lease that is enforceable is the one on fi le in the coun-ty recorder’s offi ce, witnessed and notarized. The lease is still good even if the landowner or the company is gone...”
10038115
Oil & Gas June 2012 Edition - Dix Communications12
“Things are start-
ing to pick up
again,” said Sue
Thomas Sikora, Cambridge
manager for the Opportuni-
ty Center, part of the “One-
Stop” system that, in addi-
tion to Guernsey, includes
Muskingum, Coshocton and
Licking counties.
“The oil/gas companies
were involved in planning, sur-
veying, leasing and explora-
tion,” Sikora said. “They also
requested a wage analysis for the area. All those things take
time.
“We are now experiencing an upswing, albeit slowly, in
requests for people, and it’s not just in the oil and as industry.
The increase is in all sectors of businesses. Business owners
are beginning to evaluate their needs. It is evident by the in-
crease in the number of job orders
we receive ... They are more con-
fident and have begun expanding
and adding more jobs.
“We are really in a good place
for employment in general, across
the board. We all have been so
preoccupied with Chesapeake and
Halliburton, but small business
owners are beginning to benefit
from the demand for goods and
services.
“We are moving in the right
direction. The market has shifted,”
she said. “Our mission is to keep jobs here. If you want to
work, I can find you a job ... and veterans receive priority
status.”
The One Stop is the regional office for companies looking
for fill a multitude of jobs. After filling out an application and
going through the pre-screening process. Pre-screening helps
the job applicant understand the process and makes the com-
mitment. The office provides job leads, helps applicants learn
how to look for work online, how to fill out applications, how
to fill out a resume, what to do and what not to do during the
interview process, and what kind of training might be required
for a particular job opening.
The job opportunities are updated daily online at guern-
seyworks.com. “The oil and gas companies in our area are
looking for truck drivers, truck drivers and more truck drivers.
But, the jobs are for CDLs-plus. Which means they need to do
more than drive. It’s lots of heavy, dirty work. You are part of
a team that tears down rigs,” Sikora said.
Sikora said the training program for getting a CDL is about
$4,000 for a five-week train-
ing course. There is a federal
grant for the course for people
who qualify. If you are laid
off from a job, you must be
eligible for or are receiving
unemployment benefits. There
are also income limitations.
For example, income for a
family of four cannot exceed
$46,100. If there is no federal
money, One Stop will work
with any school for assistance.
Also in demand are welders,
heavy equipment operators, people skilled in heavy manu-
facturing and outdoor construction, in addition to general,
manual labor. The oil and gas companies prefer to hire people
who live within one or two hours of the work site.
Also on the horizon is a 30-hour oil and gas industry career
training program for land men and abstractors at the Career
Center for Adult Technical Train-
ing in Caldwell. No experience is
required and there is on-the-job
training. Call for details and/or to
register at (800) 648-3695 or on-
line at www.mycareerschool.com.
Tuition is $549.
An abstractor is someone
who gathers information from a
variety of sources and presents it
in a unified document called an
abstract, which discusses the most
important and pertinent pieces of
information from these sources.
Abstractors are employed in the information science sector,
and they can work in a wide range of industries. As an ab-
stractor for the oil/gas industry obtains information primarily
about land leasing.
“This program is the first of its kind in this area. Call One
Stop at (740) 432-2381, or visit the office at 324 Highland
Ave. to see if you qualify for any portion of the tuition,” said
Sikora.
‘It’s all about the jobs,’ says One Stop director
Judie PerkowskiDix Communications Sue Sikora
“We are really in a good place for employment in general, across the board. We all have been so preoc-cupied with Chesapeake and Hal-liburton, but small business owners are beginning to benefi t from the demand for goods and services.
Drill string Drill•string noun: A column, or string, of pipe that transmits drilling
fluid (via the mud pumps) and torque (via the Kelly
drive or top drive) to the drill bit.
Dix Communications - Oil & Gas June 2012 Edition 13
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Oil & Gas June 2012 Edition - Dix Communications14
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Oil & Gas June 2012 Edition - Dix Communications16
‘Some will get paid
and some won’t.’
I have heard this
several times from a local
oil and gas man. From per-
sonal experience, I know
this to be true. But, it isn’t
always the oil and gas guys
who don’t get paid. We
are in the middle of a gold
rush the likes of which we
haven’t seen in a long time.
Like most, I have deep ties
to Guernsey County, and I am
also a history teacher who has
enjoyed many hours pursuing the history of this area. Perhaps
the greatest times here were the 1880s when General A.J.
Warner, who was from time to time a congressman from this
area, bought up a lot of the coal rights in the area and also was
the key figure in establishing a railroad from Cambridge to his
home area in Marietta.
From that point on, Guernsey County became the
capital of the raw material for the U.S. industrial
revolution. Good number seven Cambridge coal
was wanted by all and spurred
many an investor to become bond
holders for one of the many
mines that would spring up.
Depending on when you got in
on the strike, some got paid,
some didn’t.
You see, these strikes are
just that. They create a fever pitch on both sides and are cycli-
cal going up, up, up one month and just as quickly falling off
the map the next month. Hand in hand with this comes the
money, the excitement, the anxiety, and most of all the influx
of new people. This is what I will be writing about over the
next several months, as we are in the very beginning stages of
a huge “gold strike”, black gold that is, Texas tea. I can’t wait
to see what is going to happen, and in turn, I will try to write
about many of the questions and things that you may be ask-
ing yourself why this is so.
I have already seen and smelled oil from one of the local
wells that has been drilled. It smells like money. Otherwise,
why would some of the largest companies in the oil and gas
world be in our backyards? With some more good results, this
may be the tsunami I have been predicting for the last three
years and we may only be at the beginning. So, let usa begin
to understand what will take place. Educate some on what to
look for and, as always, it’s not the miner who generally
makes the money. It’s the guy that owns the dry goods
store.
A ‘TSUNAMI’ that smells like money
Donald J. GaddIndependent Landman
39 years
‘With some more good results, this may be the tsunami I have been predicting for the last three years and we may only be at the beginning.’
Dix Communications - Oil & Gas June 2012 Edition 17
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Oil & Gas June 2012 Edition - Dix Communications18
A Pennsylvania com-
pany serving the
oil and gas industry
is expanding its operations
to Barnesville and bring-
ing with it an estimated 100
jobs in the next three years.
In February, Bryan Force,
president and CEO of Force
Incorporated, headquar-
tered in Indiana, Pennsyl-
vania and state, county,
township and village of-
ficials announced that the
company is leasing the former M & S Auto building on
State Route 147.
Belmont County Port Authority Director Larry Merry said
the announcement was the first of many such projects coming
to Belmont County. “We are thrilled to welcome Bryan Force
and his company to Belmont County,” Merry said.
Thirty-year-old Force said he began the company 11 years
ago, after having three years experience in the oil and gas in-
dustry.
Force Incorporated provides oil field services that include
excavating, water hauling, “frack” job set up, spill contain-
ment, roustabout service, construction aggregate and building,
repair, modification and maintenance of oil and gas production
equipment, sites, wells and pipelines. Their asphalt services in-
clude asphalt paving, soil stabilization and road milling.
“We will be implementing all fac-
ets of our business here in Ohio,”
Force said. He said the Barnesville
yard will be the staging area for the
growth of the company’s tank ser-
vice line in the area.
He predicted that his company is
the first of many to bring their busi-
ness from Pennsylvania to this part
of Ohio.
“If the Utica shale has as good oil
play as the Marcellus has had gas
play, many companies will be shift-
ing their rigs to Ohio,” Force said.
“It is phenomenal what we’ve seen
in the Marcellus play. We’ve been fortunate to have helped im-
prove the economy of many Western Pennsylvania communi-
ties.”
“We are fortunate to have found a facility like this in this
location,” he continued, credited the Jefferis family for helping
him. “I finally found a facility I can grow into instead of out
of,” he said.
Merry also commended the Jefferis family whom he said
were “private enterprise at its finest.” “They chose to sell the
building to the company that would have the most dramatic
impact on the community,” Merry said.
Force said one of the company’s
top three customers has a distribu-
tion well in Barnesville and Force
is expected to begin serving them in
March.
“We are really excited to get out
here,”Force said. “This is an un-
tapped area for employment.” He
predicted that 75 to 100 people will
be hired out of the yard in the next
three years. “I think that will be an
easy goal to reach with the amount
of business pending in the area.”
Force said the company, which in-
cludes his brother, Chris who serves
as vice president, is looking forward to becoming part of the
community.
Belmont County Commissioner Matt Coffland thanked
Force for choosing Belmont County.
“I think you will find good people and a good place in
Force Incorporatedbringing jobs to Belmont County
Bryan Force, president and CEO of Force, Incorporated of Indiana, Pennsylvania addresses the public and state, county, township and village officials on Monday, Feb. 13when it was announced that the company has leased the former M & S Auto building on State Route 147. Force saidhe plans to hire 75-100 people at the Barnesville location within the next three years.
Cathryn StanleyDix Communications
“If the Utica shale has as good oil play as the Mar-cellus has had gas play, many companies will be shifting their rigs to Ohio.”
Dix Communications - Oil & Gas June 2012 Edition 19
Barnesville,” he said.
“I don’t think you’ll find a more receptive community than
Belmont County and Barnesville,” said Commissioner Ginny
Favede. “They are good people in a close-knit community,” she
said.
“This is a tremendously exciting time for us,” she continued,
mentioning an upcoming oil and gas expo and the promotion of
area chambers of commerce on an oil and gas Web site. “The
oil and gas industry is a small world and we are excited to
know that Belmont County is in that world,” she said.
“This means opportunities for local families,” Merry said.
Barnesville village officials, the Warren Township board
of trustees and developer T.J. Jefferis, who owns the building
and surrounding acreage are currently working on a Joint Eco-
nomic Development District agreement to extend sewer lines
to the property. A hearing on the JEDD was held on May 22.
The Belmont County Board of Commissioners also own acre-
age within the proposed JEDD area. Future development of the
area in response to the needs of oil and gas workers is expected.
Cathryn Stanley is editor of The Barnesville Enterprise, a weekly newspaper in Belmont County.
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Marcellus Shale landowners:With new wealth comes new opportunities.
To start a conversation, call (330) 493.9014 today.
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4481 Munson St. NW, Canton, OH 44718(330) 493.9014
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Oil & Gas June 2012 Edition - Dix Communications22
Just days after the Ohio
Senate approved Sen-
ate Bill 315, executives
from the Ohio Department
of Transportation Ohio
Department of Natural Re-
sources, and the Governors
Office of Appalachia met
with local officials to ex-
plain part of the bill that
refers to the model Road
Use Maintenance Agree-
ment (RUMA), initiated
and developed by county
and township officials, the oil and gas industry, ODOT,
ODNR and other entities that are, or could be, affected
by road use agreements. The meeting was at the Cross-
roads Branch Library in Cambridge.
In addition to visiting Guernsey
County, the group traveled to Noble,
Morgan, Belmont and Muskingum
counties to educate local govern-
ment officials and establish an out-
reach for the public when they have
questions about the state’s role in the
agreement, and how it will impact
local communities.
According to ODOT Director
Jerry Wray, SB 315 strengthens ex-
isting regulations for drilling, pub-
lic safety, the environment, and to
establish a mutual understanding of
what is expected from the oil and gas
industry, the county and the townships. He emphasized that the
state’s version of the RUMA is only a model.
“This is a starting point. We are providing tools for protect-
ing our infrastructure ... Each county and township can modify
the agreement to suit their particular needs. The quality, condi-
tions and logistics of county and township roads are unique
and have to come into consideration. This legislation will give
the agreement more visibility in the permitting process,” said
Wray.
Carlo LoParo, chief of communications for the ODNR, said
SB 315 changes the process for oil and gas operators.
Currently, the operator does not need a permit for road ac-
cess. We are hopeful the Ohio House will approve the legisla-
tion by early fall.
“The agreement is not mandatory. Operators do not have to
sign the agreement, but they cannot ignore it, either. If they do
not sign the agreement, they must file a signed affidavit stating
they negotiated in good faith but could not reach an agreement
with the county or township. If the county/township finds it un-
acceptable, their recourse is in the court system,” said LoParo.
Guernsey County Commissioner Steve Douglass and Guern-
sey County Engineer Delmar George were among the meet-
ing’s attendees.
Douglass said even though there has been a road use agree-
ment in effect for many years, in the past when directional
(vertical) drilling was the only option for drilling a well, a lim-
ited amount of vehicles and equipment was used in the pro-
cess. With the advent of horizontal drilling, it’s a whole new
ball game. The amount of equipment and trucks required for
the process has tripled, not only in the amount of equipment
and number of trucks, but in size and weight. Especially with
the number of trucks. Because of the millions of gallons of
water required for hydraulic fracturing, and unless the well
pad is close to a pipeline, all that water must be trucked in
— constantly — which adds to more wear and tear on roads
and bridges. A section of the agreement also includes railroad
crossings. Work performed at a railroad crossing may contain a
separate agreement at the railroad’s discretion.
George reiterated “We want our county and township roads
to be as good as they are or better.
We aren’t asking for the moon, we
just want the operator to follow the
rules.
“The RUMA is a mutual agree-
ment between two parties. We mod-
eled our agreement after Jefferson
County’s, but tailored it to fit our
needs. Each county operates dif-
ferently, but every operator will be
treated the same — big or small.
RUMA provides protection for both
the county and the operator. Our
primary concern is safety. It is our
responsibility to provide a safe in-
frastructure — roads and bridges — and that includes culverts
that are 36 inches or larger. There are also required to post a
bond for $300,000 per mile of roads they access.
“We want to meet with these companies that are coming into
our area and talk about access roads they would like to use. We
believe we can help them ... We are offering our services. We
want to do whatever we can to make sure they understand what
and where potential problems can arise. We have a road use
maintenance agreement that defines the operator’s, the coun-
ty’s and the townships’ responsibilities.”
The model Roadway Use and Maintenance Agreement for
horizontal drilling projects and infrastructure in Guernsey
County includes term and conditions that both parties agree
to. And, although there a dozen stipulations, the language is
not complicated or misleading. It also includes an appendix
which designates anything else agreed to by both parties, such
as plans prior to construction, or if the county or township
doesn’t want anything in the Appendix, that is their option. The
parties could also address if more than one operator is involved
on the same route.
Region studies use of roads for oil and gas industry
Judie PerkowskiDix Communications
“We want to meet with these companies that are coming into our area and talk about access roads they would like to use. We believe we can help them.”
Dix Communications - Oil & Gas June 2012 Edition 23
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Oil & Gas June 2012 Edition - Dix Communications24
The Buckeye STEPS
Network was recent-
ly formed to address
safety concerns related to
the growing oil and gas in-
dustry and the impact on
the local community.
“It is a proactive engagement
for the oil and gas industry to
be actively interactive with
local companies, as well as
federal, state and local govern-
ments, to understand the con-
cerns and fears regarding safe-
ty and create an environmental stewardship,” said Joe Greco.
“The network’s objective is to get the worker home safely.
“The program promotes safety, health and environmental
improvement in the exploration and production of oil and gas
in the U.S. We will follow national STEPS protocol. Our prior-
ity is safety,” added Greco.
The Buckeye STEPS Network based in Cambridge is form-
ing partnerships such as one with the Haven of Hope to assist
families in the event of an injury or death related to the oil and
gas industry.
“While you are never prepared for an injury or a death, they
(Haven of Hope) know what it means and they can help fami-
lies ease into it,” said Greco.
The network also works closely with the Occupational Safe-
ty & Health Administration and the Environmental Protection
Agency.
The Buckeye STEPS Network will meet periodically to share
and discuss safety, health and environmental incidents, best
practices and related issues; establish focus groups to address
specific issues; and work with organizations and associations,
educational institutions and others interested in the advance-
ment of worker health, safety, security and the environment.
Buckeye STEPS Network meets the first Friday of each
month, although next month the group will meet on June 8.
The original STEPS (South Texas Exploration and Produc-
tion Safety) network was formed in South Texas in October,
2003, in response to the OSHA Corpus Christi Area Office
reaching out to the Oil and Gas Exploration and Production
industry in an attempt to reduce injuries and fatalities.
In 2006, an OSHA Region VI regional administrator recog-
nized the STEPS Network as a best practice and encouraged
area directors and industry leaders to expand the program.
The first national STEPS Network meeting was held in
Houston, Texas, in December 2008.
The National STEPS Network includes operators and con-
tractors in oil and gas exploration, production and product
transmission industry as equally valued members. It encom-
passes the geographic region within the Continental United
States.
The national network promotes safety, health and environ-
mental improvement in the exploration and production of oil
and gas in US onshore operations. The National STEPS Net-
work fosters a work environment that relies upon open com-
munication and trust.
Today, the STEPS Network has grown to eight independent
organizations across the country with expansion continuing.
Visit nationalstepsnetwork.com for additional [email protected]
Industry takes ‘STEPS’ to be safe
Rick StillionDix Communications
“The program promotes safe-ty, health and environmental improvement in the explora-tion and production of oil and gas in the U.S. We will follow national STEPS protocol. Our priority is safety,”
Dix Communications - Oil & Gas June 2012 Edition 25
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Oil & Gas June 2012 Edition - Dix Communications26
For eastern Ohio, these
days, business is good.
But we know that hasn’t
always been the case. Long before
anyone thought to develop the
vast natural resources beneath our
feet in the Utica Shale, and long
before it became a national con-
versation, Appalachia was mired
in a stagnant economic recession.
Ohio’s own gift, sitting thou-
sands of feet below the surface,
is bringing about an economic
revital- ization and promise
not seen in our area
in a generation.
This past
month, Hal-
liburton broke
ground on
their new re-
gional equip-
ment and field
service center
in Zanesville.
The move
comes with
an investment
of up to $50
million. Already,
the company has
hired more than
100 Ohioans, with
plans to hire up
to 300 in the near
future.
A few months prior,
MarkWest Energy Part-
ners invested over $500
million to develop natural
gas processing facilities in Har-
rison and Noble counties. The facilities
will create over 700 construction jobs,
with over 40 permanent, well paying
positions.
That’s in addition to the 100 jobs they will be
filling to staff their new field office in Cadiz.
Producers Services Corporation, a staple of
Muskingum County for the last 31 years, is preparing
to add 30-40 new employees to their operations to meet the
rapid increase in the demand of their services.
Head up north, and we’ll find something most people may not
remember - steel and manufacturing - prospering, expanding…
and hiring.
The opportunities for our region to benefit directly are bound-
less. Pipefitters, welders, construction workers, truckers and
more are already finding work. Our colleges and trade schools
are training (and retraining) members of our community to fill
the demands of a burgeoning industry now and in the years to
come.
As the industry prepares to expand in the coming years, we
must also do the same. We must all work together to ensure our
state and our communities are in the best position to benefit.
With the continued effort from our local government, our local
businesses and our local chambers of commerce, we can position
our region to attract more business, more investment and more
growth.
Eastern Ohio can be the hub of this rebirth.
With over 200,000 Utica Shale development related jobs
projected through 2015, we are in position to be the driving
force not only in our resurgence, but Ohio’s future and economic
prosperity as well.
Shawn Bennett is Field Director for Energy in Depth-Ohio,
a research, education and public outreach campaign.
For Eastern Ohio, these days, business is good
Shawn BennettEnergy in Depth – Ohio
Chainhand chain•hand noun: an experienced laborer capable of maintaining most
parts of the rig. The chainhand is in charge of throwing
the chain to make up or break down pipe stands during
tripping pipe. They are also responsible for maintaining
the motors on the drilling rig.
Ohio’s own gift, sitting thou-sands of feet below the surface, is bringing about an economic revitalization and promise not seen in our area in a generation.
not se
Muskingum County for the last 31 year
gy p
n a
T
mon
libu
gro
the
gio
me
ser
in
Th
com
an i
up
llio
co
ed m
Oh
s to
0 in
w m
st E
d o
elop
liti
s. T
uct
ell
the
in C
sta
rs i
in
m
l
a
of
mil
the
hire
100
plans
to 300
future.
A few
MarkWes
ners invested
million to deve
gas processing facil
rison and Noble counties
will create over 700 constru
with over 40 permanent, w
positions.
That’s in addition to the 100 jobs t
filling to staff their new field office i
Producers Services Corporation, a
Muskingum County for the last 31 year
Dix Communications - Oil & Gas June 2012 Edition 27
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Lisa Loos/Dix CommunicationsAn oil and gas well site along a clearing on Route 285 at Windy Ridge Road in Seneca Township, Noble County. More than 100 red fracking tanks were delivered to the site earlier this month. Each tank reportedly holds 21,000 gallons. A message on a tire tells passersby what to do: “Stay Out.”
Oil & Gas June 2012 Edition - Dix Communications28
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Oil & Gas June 2012 Edition - Dix Communications30
j
Many years ago in this neck
of the woods, crude oil wasn’t
thought of as “black gold” and
folks weren’t anxiously await-
ing the money spigot to
turn on, as they are
today.
In fact, there was
a time when oil was
considered a pain in
the posterior.
In the early
1800s, an oil find
was met with dis-
interest or dismay.
Pioneers who settled here dug wells to find water
or brine, a source of salt. They were disappointed
when they found oil.
According to the local history Stories of
Guernsey County, Ohio by William G. Wolfe
(published by the author in 1943), the oil in-
dustry in Guernsey County had its beginning
shortly after the coming of the first settlers.
An oily substance discovered on the waters
of what is now the upper course of Wills
Creek attracted their attention. Although, as
afterwards learned, it was common petro-
leum that had oozed from the ground, it was
called Seneca oil, because it was believed
to be the same kind of oil as that found in
New York and named for an Indian Tribe.
The name Seneca was given the creek,
and a town platted near the stream at a
later date and was called Senecaville.
The oil was collected by wringing it
from blankets that had been spread
on the surface of the creek. The
crude oil was believed to pos-
sess medicinal qualities. Ped-
dlers would procure a supply
and canvas the pioneer homes,
guaranteeing it to be a sure cure
for rheumatic and other aches
and pains.
It was not until the sinking
of a great well in 1859 by Col.
Edwin Drake at Titusville, Pa.,
that any consideration was
given the oil and gas possibili-
ties of Guernsey County.
Much excitement followed
the Pennsylvania strike, and when the report reached some pros-
pectors there that oil had floated on the waters of Seneca Creek
and that some had been found here by drillers for salt, they came
out to view the Guernsey County field.
The Jeffersonian of April 5, 1861, quotes one of them, as
follows: “I can see no reason why your county is not full
of oil, in fact, I feel sure of it.”
About this time oil also was found on Duck Creek in
Noble County, and the excitement there rivaled that in
Pennsylvania.
According to Wolfe, the excitement extended into
Guernsey County, and drilling began in the area of
Cumberland. The Jeffersonian, which kept its readers
informed weekly as to the progress made in the drill-
ing, reported in April 1861 that a well had reached
a depth of 90 feet and a strike was expected at any
time. Wells were drilled in 1861 at Cambridge, Old
Washington, Middletown, Kimbolton and other
places. As all were shallow wells, not much oil or
gas was found.
“For several reasons this first Guernsey County
oil excitement died down in a few months,” Wolfe
wrote. “The prospectors were not acquainted
with the business. Holes were sunk in a haphaz-
ard way. The immense production in Pennsyl-
vania had so lowered the price of oil that the
industry ceased to be attractive, then the Civil
War opened and diverted the attention of the
people to other things.”
Not until 10 years later was there a re-
vival of interest in Guernsey County oil and
gas. The following appeared in the Guern-
sey Times of Nov. 3, 1870. “Within three
miles of Cambridge, in a direct line on the
premises of David Sarchet Sr., is an inex-
haustible salt well, from which constantly
flows a stream of salt water several inches
in diameter, and with it a large and con-
stant supply of natural gas. We have the
authority of a scientific gentleman
from the East, who visited this well
during the oil excitement here, for
saying that there is an abundance of
gas flowing from this well to light
up a place much larger than Cam-
bridge, and that it could easily be
conducted here for that purpose at
very great costs; and he expressed
great surprise that steps had never
been taken to utilize so valuable
a production of nature. The sub-
Oil in the early daysA history of the business from the settlers to the late 1920s y
Greg ParksDix Communications
Dix Communications - Oil & Gas June 2012 Edition 31
ject is one that should sufficiently claim the attention of the city
fathers as to cause them to make such investigation of the matter
as to ascertain the feasibility of the plan.”
But the city fathers did nothing, according to Wolfe, and the
people of Cambridge continued to use the kerosene lamps. About
1885, oil and gas were found near Lima and Findlay, Ohio. The
excitement resulting from these discoveries reached into Guern-
sey County. There still lingered the belief that oil and gas could be
found here. Prospectors from Pennsylvania came into the county
again, and began drilling in Senecaville. Seneca oil had never been
forgotten. The drilling there was abandoned on account of a strong
flow of salt water. Testing was done in other parts of the county.
On the Hutton farm in Jackson Township a well was drilled that
produced 21 barrels of oil a day. Three or four wells were sunk
to the Berea sand at Quaker City in 1886-87, and some gas was
found, which was utilized locally. About the same time a well near
Kimbolton produced a moderate flow of gas. Three wells drilled
in Cambridge Township prior to 1892 yielded gas in paying quan-
tities. Oil was found at the edge of Senecaville in 1897, at a depth
of 167 feet.
Before 1900, the most productive gas field in Guernsey Coun-
ty was the Harmony field in Jackson Township. The Cambridge
Light and Fuel Company had several wells there, some of which
produced from 1,000,000 to 2,000,000 cubic feet a day. This was
piped to Cambridge and Byesville.
For several years following the oil and gas activities of the
1880s and 1890s, the interest for languished but never died. Some
venturesome prospectors would lease land and sink wells and oc-
casionally make strikes.
Oil was found in Lore City and Monroe Township. The produc-
tion was not large at either place.
Guernsey County had its greatest gas boom during 1926-27.
Drilling activities were most extensive in Knox, Adams and West-
land townships, in which there were more than 100 heavy produc-
ing wells. One of the first of these was drilled in the northwestern
part of Knox Township by the Ohio Fuel Gas Company. The ini-
tial yield of this well was beyond the measuring capacity of any
available instrument, according to Wolfe. However, it was claimed
to be from 50,000,000 to 75,000,000 cubic feet a day.
Immediately following this sensational strike, a number of
companies began drilling and wells yielding from 2,000,000 to
30,000,000 cubic feet a day became numerous. The field was ex-
tended as the drilling advanced. By the close of 1927 fairly defi-
nite boundaries were established, showing it to be a strip about
four miles wide and 25 miles long, extending from northeast to
southwest. It not only included Knox, Adams and Westland town-
ships, but extended to Jackson, Wheeling, Monroe and some other
townships.
A 12-inch distributing main was laid by the Ohio Fuel Gas
Company and much of the product carried to points in Ohio, West
Virginia, Pennsylvania and Michigan.
Following the gas strikes, oil was found in the southern part of
the territory. Some of the oil wells were said to yield from 50 to
300 barrels a day.
At the close of 1927, there were about 40 wells producing oil in
Jackson and Westland townships. This was sent to the refineries of
Parkersburg, W.Va., through a main laid by the Buckeye Pipe Line
Company. Much oil was found in Wheeling Township, and this,
too, was piped to refineries.
Oil & Gas June 2012 Edition - Dix Communications32
Infinity Oilfield Servicesopens site in Newcomerstown
The anticipated oil
and gas boom in
Ohio has prompted
one company to re-locate
to Newcomerstown — and
with that — bringing more
than 50 jobs to Tuscarawas
County.
“Ohio should be bigger than
Texas in the oil and gas (indus-
try) — that’s what they are say-
ing,” said Kevin Glazer, who is
in field operations/dump truck
manager at Infinity Oilfield
Services in Newcomerstown.
Chad Kerns is the operations
manager of the Ohio yard for Infinity Oilfield Services LLC.
Infinity Oilfield Services is based out of Williamsport, Pa.
Glazer, who once drove a truck for a living, switched careers
and joined Infinity
Oilfield Services in
Newcomerstown.
The Newcomer-
stown operation
just opened in May.
Right now, he
said they are most-
ly working in the
Carrollton area.
But, he said their
trucks, which sup-
plies water as well
as stone/gravel for
maintaining the
road into the oil
well, will go within a 100-mile radius of Newcomerstown.
However, he said there are workers from the Newcomerstown
location working along the Ohio River supplying water to oil
wells. They take a van from Newcomerstown to the river where
their trucks are located.
“We’ll pretty much go where they (oil well supervisors)
want us to go,” he said. “We never know on a day-to-day what
we’re going to get into.”
Glazer said his employees work a 12-hour shift (6 a.m. to 6
p.m.) and work four days on and have two days off, but their
days off are never the same two days.
Soon, mechanics will be coming to the Newcomerstown site
and trucks will be repaired in-house.
In Newcomerstown, they have 30 water trucks and will have
another 20 more by the end of the month. However, they also
have 10 specially-made chrome dump trucks from San Anto-
nio, Texas, that are used to haul stone and gravel for the road
Niki WolfeDix Communications
Kevin Glazer of Infinity Oilfield Services in Newcomerstown stands in front of a row of the large water hauling trucks (they are also known as "straight trucks") that are used at oil and gas well production sites.
Chad Kerns is the operations manager of the Ohio yard for Infinity Oilfield Services LLC.
10039388
Cheri Hill, Manager
(740) 439-7777P.O. Box 1837
Cambridge, Ohio 43725 WHISTLING PINE HOMES
(330) 852-2466
Dix Communications - Oil & Gas June 2012 Edition 33
into the well site. More dump trucks are expected to be added to
the fleet.
As far as hiring more drivers, Glazer said they are always taking
applications. He said drivers, both men and women, must have a
CDL, Class A, license with no Hazmat endorsement.
To learn more about Infinity Oilfield Services, visit www.infini-
tyoilfield.com or stop by their Newcomerstown location which is
behind the Newcomerstown Truck Stop on Adena Drive.
“Right now, we’re in a good location, between I-77 and US 36,”
Glazer said. “We can go four different directions.”
And they are looking forward to what Ohio has to offer — be-
neath the ground. Looking at the computer, Kevin Glazer of Infinity Oilfield Services in Newcomerstown looks at what orders they have for the upcoming days.
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Oil & Gas June 2012 Edition - Dix Communications34
IT’S HAPPENING HERE... it’s happening now
The Ohio Oil and Gas Energy
Education Program (OOGEEP)
is a non-profit statewide educa-
tion and public outreach program.
As one of only two organiza-
tions of it’s kind in the country,
we provide a variety of programs
throughout the state, focusing
primarily on teacher workshops,
scholarships, student education,
firefighter training, and research.
One of our most vital func-
tions, however, and one of utmost
importance now and in the years
ahead, is the development of our
industry workforce.
Last September, we released
our 2011 Economic Impact Study, providing the first compre-
hensive analysis about how planned development in Ohio’s Utica
shale formation could impact the state in the coming years.
And with projections of over
204,000 Ohio jobs created and
supported by the development of
this geological gift, the positive
impact it will have in eastern Ohio
and beyond is nothing short of as-
tounding.
In the few short months since
the study’s release, we are already
seeing the benefits of shale de-
velopment come to fruition with
enormous and immediate gains in Ohio’s workforce. Reported
employment tied to shale development has surpassed our initial
projections with over 6,000 reported jobs created or supported by
the industry.
The long dormant steel industry has returned to Youngstown
and Lorain as plants prepare to meet the demands of an invested
and optimistic oil and gas industry.
Ohio, a state that has witnessed countless companies – and in-
dustries – leave it’s borders, is now welcoming new parties con-
tributing incredible assets and creating new jobs in our communi-
ties.
Billions of dollars in investments have poured into our state by
these companies seeking to create the needed infrastructure re-
quired to develop these untold volumes of energy.
In short – it’s happening here, and it’s happening now. The op-
portunity to continue grow our economy is tied directly to contin-
ued success in the Utica Shale.
However, it is important to recognize we are still in the very
infancy of this movement. In order to ensure continued success,
we remain fully committed to the development of Ohio’s most
valuable resource – our dedicated work force.
The next few years are critical to Ohio’s economic rebirth. As
we work through the leasing and
exploration phase of development,
our organization and the industries
driving this recovery are working
diligently with education centers
and training facilities across the
state to ensure Ohioans are best
prepared and best positioned to fill
the jobs that will soon be in high
demand.
Ronda Reda is executive director of the Ohio Oil and GasEnergy Education Program.
Rhonda RedaOhio Oil and Gas Energy Education
Program
Billions of dollars in investments have poured into our state by these com-panies seeking to create the needed infrastructure required to develop these untold volumes of energy.
61077 Southgate ParkwayCambridge, OH 43725Phone: (740) 995-3158Cell: (330) 795-8552
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David Martin North Division Ops Manager
8583 Georgetown Rd., Unit ACambridge, OH 43725
8583 Georgetown Rd., Unit ACambridge, OH 43725
phone (740) 255-5393cell (740) [email protected]
phone (713) 338-1505
Oil & Gas June 2012 Edition - Dix Communications36
10039394
CRUDE AWAKENING
Utica Shale127 Wells Permitted25 Wells Drilling43 Wells Drilled16 Wells Completed10 Wells Producing1 Wells Plugged
221 Total Horizontal Permits
OHIO WELL ACTIVITYby the numbers
Data as of 5/21/12Source: Ohio Department of Natural Resources
Marcellus Shale8 Wells Permitted0 Wells Drilling3 Wells Drilled4 Wells Producing
15 Total Horizontal Permits
Dix Communications - Oil & Gas June 2012 Edition 37
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Oil & Gas June 2012 Edition - Dix Communications38
Industry leader comes toSoutheast OhioH
alliburton, a leading provider of innovative
products and services to the energy industry,
is pleased to be one of the newest members of
Zanesville-Muskingum County’s business community.
Halliburton’s history in Ohio can be traced to the 1950s,
and with the recent groundbreaking for our new site in
Zanesville, we are excited about strengthening our roots
in Ohio once again.
The Zanesville facility will be a full-service center support-
ing eight or more of Halliburton’s business lines. The site will
measure approximately 135,000 square feet and house an ad-
ministration office, maintenance shop, general warehouse and
bulk storage facilities for sand and cement.
Halliburton has already hired more than 100 Ohio residents
in preparation for the opening of the new facility, which is ex-
pected to employ approximately 300 people. Job openings in-
clude field operators, field engineers, diesel mechanics, materi-
al handlers, and some management and administrative support
functions. Please visit www.gohalliburton.com <http://www.
gohalliburton.com> to view and apply for job openings and to
learn about Halliburton’s competitive compensation packages.
At Halliburton, we are committed to being a good corporate
neighbor by devoting time and resources to charitable organi-
zations and educational institutions wherever our people live
and work. Each year around the world, our employees com-
plete hundreds of community projects and donate thousands
of volunteer hours. We look forward to building strong ties in
the Zanesville community and to serving our customers in this
region for many years to come.
Halliburton has already hired more than 100 Ohio residents in prepa-ration for the opening of the new facility, which is expected to em-ploy approximately 300 people.
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Dix Communications - Oil & Gas June 2012 Edition 39
Halliburton broke ground Tuesday in the EastPointe Business Park east of Zanesville. Participating were, l to r, Jeff Hibler, vice president of Halliburton; Ron Hall, senior vice president; Ohio Gov. John Kasich; Mike Jacoby, executive director of the Muskingum County Port Authority; and David Mustine, general manager of Jobs Ohio.
HALLIBURTON
© 2012 Halliburton. All rights reserved.
Solving challenges.™
While we’re now in 80 countries around the world, we’ve never forgotten our roots.Halliburton has had a business presence in Zanesville, Ohio, dating back to the early 1950s.
Since then, we’ve opened additional facilities throughout the state. Now, with exciting
opportunities emerging in the Utica shale play, Halliburton is returning to its Ohio roots by
increasing our presence in Zanesville with the construction of a new facility—and taking our
place as a major area employer.
Thanks to new local opportunities, Halliburton is hiring. Please visit www.gohalliburton.com
to view our job opportunities. For more information about Halliburton, visit us online at
www.halliburton.com.
10039236
Dix Communications - Oil & Gas June 2012 Edition 43
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Oil & Gas June 2012 Edition - Dix Communications44
Thomas E. Stewart, executive vice president of the Ohio Oil and Gas Association, said recently that the Ohio Business Roundtable’s analysis of Gov. Kasich’s proposal to increase the severance tax on oil and natural gas producers through-out the state is based on several fl awed assumptions.“The study, conducted by Ernst & Young, drastically under-
estimates the up-front cost of developing a horizontal well,” Stewart said in a news release. “The cost of an average horizontal well in Ohio is between $8 and $12 million, far more expensive than the report’s assumption of $4 million per well. The report also assumes that an average Ohio well will produce 90,000 barrels of natural-gas liquids in the initial
year of operation. “We’re also very curious as to why the CEOs and business
leaders that comprise Ohio’s Business Roundtable wouldsupport a tax increase on another business, particularly when they pay a commercial activity tax (CAT) rate of just 26 cents per $100 in revenue, while asking one industry to paya rate nearly 16 times higher.”The Ohio Oil and Gas Association is a trade association
with more than 2,500 members involved in the exploration,production and development of crude oil and natural gas re-sources within the state of Ohio. For more information, visit www.ooga.org.
Association opposes Kasich proposal
10039584
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Dix Communications - Oil & Gas June 2012 Edition 45
The Ohio Senate ap-
proved legislation
Tuesday honoring
environment-minded oil
and gas drillers.
Senate Bill 328 would re-
quire the Ohio Department of
Natural Resources to create the
Governor’s Award for Environ-
mental Stewardship, targeted
at companies and individuals
involved in the oil and gas in-
dustry who represent “wise en-
vironmental stewardship.”
“It will allow Ohio to show
its appreciation to those who balance productivity with con-
servation, profitability and growth with smart-minded steward-
ship,” said Sen. Troy Balderson, a Republican from Zanesville.
The final vote was 30-1, and the legislation heads to the Ohio
House for further consideration.
Potential honorees could be nominated by lawmakers, pri-
vate citizens or industry representatives, under rules that would
be developed by ODNR.
The latter also would be responsible for setting procedures
for selecting a winner and for designing “a plaque or other
commemorative item, according to an analysis by the state’ s
legislative service commission.
“I have been told by members of the oil and gas industry that
this type of program has been very successful in other states
and that similar awards have been highly sought after,” Balder-
son said. “It is my hope that this bill ... will play a small role
in encouraging mindful stewardship on the part of those many
businesses across the state.”
Sen. Michael Skindell, a Democrat from the Cleveland area,
cast the lone no vote.
“It’s my belief that it’s the governor’s prerogative to grant an
award and that decision should lay within the governor’s office,
that this legislature should not be dictating to the governor in
granting awards in this type of field,” he said. “And I think the
legislature is overstepping its bounds.”
Marc Kovac is the Dix Capital Bureau Chief. Email him [email protected] or on Twitter at OhioCapitalBlog.
Senate passes billCreates annual environmental award for oil and gas drillers
Marc KovacDix Capital Bureau
Ta
ur
us
Ber
etta
10039032
Oil & Gas June 2012 Edition - Dix Communications46
Ohio’s rich natural gas and crude oil reserves provide many opportunities to help the state’s economy grow and prosper.• The industry’s 4,490 direct jobs and another 12,950
indirect jobs support a total of 17,440 Ohio jobs.• The industry is responsible for $793 million per year
in Ohio salaries.• Ohio keeps $793 million per year in the state when
buying locally produced natural gas and crude oil.• Ohio consumers save $30 million per year in avoided
interstate pipeline transportation costs, and another $9.2 million per year due to the price reducing impact of local natural gas supplies.
• The industry reinvests $238 million annually on explo-ration and development.
• The industry pays over $32.7 million annually in local, state and federal taxes.
• The industry generates approximately $988 million in gross state product and a statewide output or sales of $1.7 billion per year.
The industry paid over $90 million in royalties and pro-vided another $61 million in free gas last year to local landowners (mineral interest owners) including farmers,
businesses, schools, churches and local governments with wells on their property.• Ohio’s a national energy leader in natural gas and
crude oil production.• Ohio is ranked fourth in the total number of wells
drilled. Ohio has drilled over 273,000 wells to date, followed only by Texas, Oklahoma and Pennsylvania.
• Ohio drilled 460 new wells in 2011.• Ohio produced 4.9 million barrels of crude oil in 2011.
Today, crude oil is refi ned into more than 6,000 ev-eryday products including medicines, personal care products, plastics, synthetics and fuel.
• Ohio produced 73 billion cubic feet of natural gas in 2011, creating enough energy to heat over 1 million Ohio homes and businesses. Nearly 7 out of every 10 homes are heated with natural gas.
Almost 100% of the Ohio natural gas produced remains in the state.• Ohio’s natural gas and crude oil production has one
of the smallest environmental surface footprints of anyenergy source.
• Advances in technology leave smaller footprints and less surface disturbance.
Oil & Gas Fact Sheet
110 years ago, Peoples Bank was built by oilmen and backed by the idea that working together matters. Today, we continue to honor that tradition by serving the business and personal clients who are part of the oil and gas industry in our communities. By working with you, we’re focused on building your success. Whether you need strategies for wealth management or lending options for your oil and gas business, Peoples Bank has the programs, the people and the proven history to turn your dreams into reality.
Our Foundation, Your Future.
At Peoples Bank, our history is tied to your success.
We are your oil and gas partner dedicated to serving you. Call or visit us today.
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Dix Communications - Oil & Gas June 2012 Edition 47
• The average well site footprint today is 30 percent of the size it was in 1970. Today, Ohio well sites are typi-cally the size of a family dining room, and the actual well has a diameter about the size of a soccer ball.
• Specifi c environmental laws and regulations are regularly inspected and supervised by the Ohio De-partment of Natural Resources (ODNR) Division of Mineral Resources Management (DMRM)and other government agencies.
Ohio’s industry is continuing to create energy, econom-ic and lifestyle benefi ts ---yesterday, today and into the future.
Ohio’s natural gas and crude oil producers are truly Ohio’s most dependable energy farmers. They choose
to participate in a high risk business, and they are ac-customed to working long hours and operating under adverse weather conditions. Innovations, perseverance,and hard work are key to survival in an industry built ona variety of uncertain conditions geological, economi-cal and operational. Through an ongoing commitment of Ohio’s natural gas and crude oil producers, the domesticindustry remains strong.
Ohio’s supply of natural energy resources is indeed signifi cant. As the states supply adds to the national sup-ply, our resources are helping keep prices in balance, while also helping us be more independent from foreign energy supplies.
Contact theCommunity Improvement Corporation of Noble County
740-509-0248
Contact theCommunity Improvement
Corporation of Noble County740-509-0248 10039706 10039585
Photo by Kevin Graff, The Alliance Review
Oil & Gas June 2012 Edition - Dix Communications48
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Mud Mud noun: Slang term for drilling fluid. A Mud Man is the drilling
fluids technician responsible for formulating the mud,
while a Mud Logger checks mud cuttings from the drill
bit for traces of rock or oil and gas that provide a picture
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Dix Communications - Oil & Gas June 2012 Edition 41
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Oil & Gas June 2012 Edition - Dix Communications42
TOP COUNTIES WITH HORIZONTAL DRILLING ACTIVITY(By number of sites)
1. Carroll County ..........782. Columbiana County ..343. Jefferson County .......254. Monroe County ......... 215. Harrison County ....... 126. Belmont County ........ 10 Stark County ............ 107. Mahoning County ......98. Guernsey County .......7 Noble County ............7 Portage County..........79. Tuscarawas County ....510. Muskingum County ....311. Coshocton County ......2 Trumbull County ........2 Knox County .............212. Geauga County .........1 Ashland County .........1 Medina County ..........1
Well Sites in various stages: Permitted, Drilling, Drilled, Completed, Producing, PluggedSource: Ohio Department of Natural Resources